The VA loan "Snowball"?

[Daniel Dealmeida]

Good afternoon BP Forums! 

My wife & I are both U.S military veterans with access to the VA loan. I used my VA loan to purchase our primary residence for $240,000 back in 2020. Now that we've spent about the last 12 months studying & working up the courage to dive into real estate investing, we come to the BP forums for more guidance lol!

I would like to know if anyone knows if we could buy another primary using my wife's VA Loan & rent our current single family home, then just repeat the process yearly (alternating) to grow our portfolio? 

Our market is getting quite competitive (Savannah, GA / Lowcountry, SC) so we've also thought of tapping into the equity in our primary (~$90,000) to expand into this world of REI.

Sincerely, 

- analysis paralysis rookie looking to fly!   Thanks y'all!

[Nolan Chandler]

Rah, Daniel.

That's great that you both are ready to embark on this journey.  Some things to consider:

1. Yes, as long as she has enough entitlements remaining, she can use her VA loan while you move to your new primary residence and keep your VA loan at the former, now rental, property.

2. There are VA loan limits per county, so just be aware of those limits and act accordingly.

3. You can do this "alternating," as you put it, but if you exceed your entitlement amount, you will have to free up your (or her) VA entitlements in order to continue as you go. Lenders would be knowledgeable about the restoration process if you decide to pursue that particular route.

4. Otherwise, tapping into equity to further grow your portfolio is an excellent way to put money to use in order to grow your wealth.  Just make sure not to over-leverage, and that sentiment means something different to each individual.  So, it is more a reflection rather than a hard number or percentage anyone can give to you.

Happy to discuss any of this more in depth if you ever wanted; otherwise good luck on your new endeavors.

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REALTOR® CalDRE: 02221003 | CA Bar: 322013